Accounting Information Systems
10th Edition
ISBN: 9781337619202
Author: Hall, James A.
Publisher: Cengage Learning,
expand_more
expand_more
format_list_bulleted
Question
Chapter 11, Problem 6P
To determine
Identify the advantages and disadvantages linked with the decision of implementing the new system using big-bang approach and phased-in approach.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
The Nevada Department of Motor Vehicles (DMV) is the agency responsible for licensing both drivers and vehicles in the state of Nevada. Until recently, legacy systems were used for both licensing needs. The legacy system for driver’s licenses maintained the following information about each licensed driver: name, age, address, violation, license classification, organ donation, and restrictions. The vehicle licensing system maintained information about each vehicle, including cost, taxes, vehicle identification number (VIN), weight, insurance, and ownership. In the summer of 1999, over a 3-day weekend, information from the two legacy systems was transferred to a new ERP. The ERP and all new hardware were installed in every DMV across the state, and when employees returned from their long weekend, an entirely new system was in place. The DMV employees were not well trained on the new system, and the system itself presented a few bugs. As a result of these obstacles, customers at the DMV…
The Department of Transportation wishes to choose between two alternative accident prevention programs. It has identified three benefits to be gained from such programs:
1.
Reduced property damage, both to the vehicles involved in an accident and to other property (e.g., real estate that may be damaged at the scene of an accident)
2.
Reduced injuries
3.
Reduced fatalities
The department’s experts are willing to provide dollar estimates of property damage savings that are expected to accrue from any program, but they will estimate only the number of injuries and fatalities that may be averted.
The first program is relatively moderate in its costs and will be concentrated in a large city. It involves upgrading traffic signals, improving road markers, and repaving some potholed streets. Because of the concentration and value of property in the city, savings from reduced property damage are expected to be substantial. Likewise, a moderate number of traffic-related deaths and…
The Department of Transportation wishes to choose between two alternative accident prevention programs. It has identified three benefits to be gained from such programs:
1.
Reduced property damage, both to the vehicles involved in an accident and to other property (e.g., real estate that may be damaged at the scene of an accident)
2.
Reduced injuries
3.
Reduced fatalities
The department’s experts are willing to provide dollar estimates of property damage savings that are expected to accrue from any program, but they will estimate only the number of injuries and fatalities that may be averted.
The first program is relatively moderate in its costs and will be concentrated in a large city. It involves upgrading traffic signals, improving road markers, and repaving some potholed streets. Because of the concentration and value of property in the city, savings from reduced property damage are expected to be substantial. Likewise, a moderate number of traffic-related deaths and…
Chapter 11 Solutions
Accounting Information Systems
Ch. 11 - Define ERP.Ch. 11 - Prob. 2RQCh. 11 - Define core applications, and give some examples.Ch. 11 - Prob. 4RQCh. 11 - Prob. 5RQCh. 11 - Prob. 6RQCh. 11 - Prob. 7RQCh. 11 - Prob. 8RQCh. 11 - Prob. 9RQCh. 11 - Prob. 10RQ
Ch. 11 - Prob. 11RQCh. 11 - Prob. 12RQCh. 11 - Prob. 13RQCh. 11 - Prob. 14RQCh. 11 - Prob. 15RQCh. 11 - Prob. 16RQCh. 11 - Prob. 17RQCh. 11 - Prob. 18RQCh. 11 - Prob. 19RQCh. 11 - Prob. 20RQCh. 11 - Prob. 21RQCh. 11 - Prob. 22RQCh. 11 - Prob. 23RQCh. 11 - How are OLTP and OLAP different? Provide some...Ch. 11 - Prob. 2DQCh. 11 - Why do ERP systems need bolt-on software? Give an...Ch. 11 - Your organization is considering acquiring bolt-on...Ch. 11 - Prob. 5DQCh. 11 - Prob. 6DQCh. 11 - Prob. 7DQCh. 11 - Prob. 8DQCh. 11 - Prob. 9DQCh. 11 - Prob. 10DQCh. 11 - Prob. 11DQCh. 11 - ERP systems use the best-practices approach in...Ch. 11 - Prob. 13DQCh. 11 - Explain how SAP uses roles as a way to improve...Ch. 11 - Prob. 15DQCh. 11 - Prob. 16DQCh. 11 - Distinguish between the OLAP operations of...Ch. 11 - When would slicing and dicing be an appropriate...Ch. 11 - Prob. 19DQCh. 11 - What is the fundamental concept behind the rule of...Ch. 11 - What is the purpose of role-based governance...Ch. 11 - Prob. 1MCQCh. 11 - Prob. 2MCQCh. 11 - Prob. 3MCQCh. 11 - Prob. 4MCQCh. 11 - Prob. 5MCQCh. 11 - Prob. 6MCQCh. 11 - Which statement is LEAST accurate? a. Implementing...Ch. 11 - Prob. 8MCQCh. 11 - Auditors of ERP systems a. need not be concerned...Ch. 11 - Prob. 10MCQCh. 11 - Prob. 1PCh. 11 - Your organization is planning to implement an ERP...Ch. 11 - Prob. 3PCh. 11 - Prob. 4PCh. 11 - Prob. 5PCh. 11 - Prob. 6PCh. 11 - Prob. 7PCh. 11 - Prob. 8PCh. 11 - Prob. 9P
Knowledge Booster
Similar questions
- You have developed a self-study certification system for those who need credit hours for recertification by your state’s social welfare office. The system operates at virtually no cost, i.e., there is no marginal cost. A marketing research team has assembled the following sales information. You are researching the options for pricing the courses. Your goal is to achieve maximum revenue to establish funding to maintain and update the system to reflect annual policy changes in licensing requirements. Complete the calculations for Total Revenue by determining how many customers will purchase at each of the segment prices. Online Self Certifications for Social Work License Certification in Online Counseling Certification as a Group Home Counselor Bundle Customers TR Counseling TR Group Home TR Bundle Segment 1 1000 $190 a $70 e $260 4a Segment 2 1000 $150 b $90 f $240 4b…arrow_forwardFraud in Purchasing. Consider the following scenario:Adam worked for the local hardware store as an outside sales representative. His job wasto visit local companies and contractors in an attempt to identify their needs for tools andmaterials and provide a bid to supply those items. When a local contractor accepted a newjob, Adam would get its material requirements, come back to the store, and prepare and submit a proposal for the items. After some initial success with Big Builder, a large contractor,the number of jobs awarded to Adam had decreased dramatically.One day, Adam was back at the store after losing a bid to Big Builder when he noticedsomeone in the store purchasing the exact items and quantities that were in the specificationfor that bid. The combination of items was unusual, and it would be an unlikely coincidencefor someone else to want such a combination in that exact quantity. The customer paid theretail price for the merchandise and left.Adam decided to contact Big…arrow_forwardWhich one of the following costs is most likely to be deductible? Group of answer choices Fines paid for dumping toxic waste into a City of Denver park. Bribes to a city health inspector to ensure an “A” rating to a restaurant. The telephone bill for the headquarters of an illegal stolen car parts organization. Advertising costs for a Colorado marijuana dispensary.arrow_forward
- Blackmon Company provides locator services to the city transportation departments. Blackmons service involves installing a dedicated hardware transmitter in each city bus. This transmitter provides real-time information to a central logistics center that provides a manager with detailed information as to bus location, speed, current weather, and traffic patterns. The manager can then reroute buses to improve efficiency of operations and increase customer satisfaction. Customers generally sign two separate contracts: one contract governs the sale of the hardware devices, while the second governs the provision of the locator services. On January 1, 2019, a customer purchased Blackmons service by signing a contract for 100 devices for 480,000, the normal selling price. In addition, the customer signed a separate 12-month service contract for 2,000 per month (20 per month per unit, which is the standard selling price for the service). This amount is billed on a monthly basis, and the customer pays for January service on January 31, 2019. The hardware device can only be used with Blackmons services and there are currently no other competitors making devices that work with the Blackmon service. The customer may cancel at any time; however, the amount paid for the device is nonrefundable. The customer is given the right to renew the service contract at the existing rate each December, and the average life of a customer contract is 5 years. The customer takes delivery of the device on January 1, 2019, and begins the locator service on that date. Required: 1. Identify the contract(s) for accounting purposes. 2. How many performance obligations exist? When will the performance obligation(s) be satisfied? 3. Prepare Blackmons journal entries for January 2019. 4. Assume that other competitors sell a similar locator service comparable to Blackmons. Would this fact change your previous answers?arrow_forward65. Which of the following inventories of a government entity would be subsequently measures at a lower of cost and current replacement cost? Inventories of rice that are held for sale Medicines being sold by a government-owned pharmacy Books to be distributed to students in public schools Forest products held for salearrow_forwardResponsibility, controllability, and stretch targets. Consider each of the following independent situations for Sunrise Tours, a company owned by David Bartlett that sells motor coach tours to schools and other groups. Sunshine Tours owns a fleet of 10 motor coaches and employs 12 drivers, 1 maintenance technician, 3 sales representatives, and an office manager. Sunshine Tours pays for all fuel and maintenance on the coaches. Drivers are paid $0.50 per mile while in transit, plus $15 per hour while idle (time spent waiting while tour groups are visiting their destinations). The maintenance technician and office manager are both full-time salaried employees. The sales representatives work on straight commission. When the office manager receives calls from potential customers, she is instructed to handle the contracts herself. Recently, however, the number of contracts written up by the office manager has declined. At the same time, one of the sales representatives has experienced a…arrow_forward
- Recently, a group of university students decided to incorporatefor the purposes of selling a process to recycle thewaste product from manufacturing cheese. Some of theinitial costs involved were legal fees and office expensesincurred in starting the business, state incorporation fees,and stamp taxes. One student wishes to charge thesecosts against revenue in the current period. Anotherwishes to defer these costs and amortize them in thefuture. Which student is correct?arrow_forwardInternal Control Cases UTICA LIGHTING COMPANY (CENTRALIZED SYSTEM WITH DISTRIBUTED TERMINALS) Utica Lighting Company (ULC) is a manufacturer of outdoor lighting systems for patios, walkways, and public areas. It markets its product to landscaping companies and local municipalities. ULC employs a centralized computer system with distributed terminals in the various departments. Recently the company has been having manufacturing delays and cost overruns. ULC has hired your auditing firm to assess its operations and internal control procedures. ULCs conversion cycle is triggered by a report from the finished goods warehouse. The warehouse clerk periodically reviews the inventory records in a search for low-stock items. When the quantity on hand of an inventory item in the finished goods warehouse falls below its pre-established minimum, the warehouse clerk sends a digital inventory status report from the warehouse terminal to production planning and control advising them to schedule a production batch run for the item in question. Upon receipt of the report the production planning and control department clerk accesses the digital bill of materials and the routing sheet files for the items to be produced and adds the production details to the digital production schedule. The system automatically adds a record to the open work order file and sends a digital work order to the work center supervisors terminal and to the cost accounting clerks terminal. The work center supervisor accesses the work order from his terminal and prints hard-copy move tickets and material requisitions for each stage in the production process. Production employees take the materials requisitions to the storekeeper and secure the components, subassemblies, and raw materials needed to perform their production tasks. If excess materials beyond the standard amount are needed, the supervisor prepares additional materials requisitions. The employees also complete job time tickets after each stage in the process to reflect the time spent on the job. When the employees complete their tasks, they send the move tickets and time tickets to the cost accounting department. The storekeeper receives the materials requisitions and releases the materials into production. He then updates the raw material inventory records and sends the requisition to cost accounting. When inventories of component parts and raw materials fall to their reorder points, the storekeeper prepares purchase orders and sends them to the respective vendors. Vendors deliver raw material inventories directly to the storeroom, at which time the storeroom clerk inspects them and updates the digital raw materials subsidiary ledger. Each day the storekeeper prepares a journal voucher and posts to the general ledger raw material control account. The cost accounting clerk receives the digital work order and initiates a new WEP account for the batch. During the production process, the clerk receives hard-copy move tickets, materials requisitions, and job tickets from the work centers, which the clerk uses to update WIP account. When production is complete, the clerk closes the WIP account for the batch and transfers it to the finished good inventory subsidiary ledger. At the days end, the cost accounting clerk prepares a digital journal voucher reflecting the WIP status and any transfers from WIP to finished goods inventory. The clerk then posts the journal voucher to the WEP and FG general ledger control accounts. Required a. Prepare a data flow diagram of the current system. b. Prepare a system flowchart of the existing system. c. Describe the internal control weaknesses.arrow_forwardDiscuss: Special Business Forms and Contract Liability The city of Papagos, Arizona, had a deteriorating bridge in need of repair on a prominent public roadway. The city posted notices seeking proposals for an artistic bridge design and reconstruction. Davidson Masonry, LLC—owned and managed by Carl Davidson and his wife, Marilyn Rowe—decided to submit a bid for a decorative concrete project that incorporated artistic metalwork. They contacted Shana Lafayette, a local sculptor who specialized in large-scale metal creations, to help them design the bridge. The city selected their bridge design and awarded them the contract for a commission of $184,000. Davidson Masonry and Lafayette then entered into an agreement to work together on the bridge project. Davidson Masonry agreed to install and pay for concrete and structural work, and Lafayette agreed to install the metalwork at her expense. They agreed that overall profits would be split, with 25 percent going to Lafayette and 75 percent…arrow_forward
- Target costs, effect of process-design changes on service costs. Solar Energy Systems (SES) sells solar heating systems in residential areas of eastern Pennsylvania. A successful sale results in the homeowner purchasing a solar heating system and obtaining rebates, tax credits, and nancing for which SES completes all the paperwork. The company has identied three major activities that drive the cost of selling heating systems: identifying new contacts (varies with the number of new contacts); traveling to and between appointments (varies with the number of miles driven); and preparing and ling rebates and tax forms (varies with the number of solar systems sold). Actual costs for each of these activities in 2016 and 2017 are:arrow_forwardCVP Analysis in a Professional Service Firm Leary and O’Donnell, a local CPA firm, has beenasked to bid on a contract to perform audits for three counties in its home state. Because existing staffare fully scheduled, if the firm is awarded the contract, it must hire one new staff member at a salaryof $52,000 to handle the additional workload. The managing partner is convinced that obtaining thecontract will lead to additional new clients from the respective counties. Expected new work (excluding the three counties) is 750 hours at an average billing rate of $90.00 per hour. Other informationfollows about the firm’s current annual revenues and costs:Firm volume in hours (normal) 30,750Fixed costs $575,000Variable cost $35.00/hrShould the firm win the contract, the audits of the three counties will require 950 hours ofexpected work.Required1. If the managing partner’s expectations are correct, what is the lowest bid the firm can submit and stillexpect to increase annual net income? What…arrow_forwardStudent organizations sometimes require transportation for off-campus activities, and school policy requires students to be over 23 years old to serve as transport.Lael wants to determine how many of the active students will be eligible to transport other group members. In cell J2, enter a formula using the IF function and structured references as follows to determine if Kay Colbert can serve as authorized transport:a. The function should use a reference to the Age column to determine if the student's age is greater than 23, and should return the text Yes if true and No if false.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Business Its Legal Ethical & Global EnvironmentAccountingISBN:9781305224414Author:JENNINGSPublisher:Cengage
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Business Its Legal Ethical & Global Environment
Accounting
ISBN:9781305224414
Author:JENNINGS
Publisher:Cengage
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub